BOLLORÉ SE 
PRESS RELEASE
First half 2020 results | July 31, 2020 |
€
Good half-year 2020 results for all business lines
despite the pandemic
Adjusted operating income (EBITA(1)): €948m up 3%
Net income Group share: €174m up 17%
- Revenue: €11,612 million, -1%
- EBITDA: €1,555 million, +10%
- Adjusted operating income (EBITA (1)) €948 million, +3%:
- Bolloré Transportation & Logistics
- Communications (Vivendi):
- Electricity storage and systems
€303 million -2% €735 million +2% -€67 million, +18%
▪ Net income: €758 million, up by 43% and net income Group share of €174 million, an increase of 17%. This does not include the gain on the sale of 10% of the share capital of UMG on March 31, 2020, on the basis of an enterprise value of €30 billion for 100% of UMG. The sale was recognized in equity in the amount of €2.8 billion.
▪ Net debt: €7,528 million, down by €1,192 million compared to December 31, 2019 (of which Bolloré, excluding Vivendi: €4,471 million, down €185 million).
Improved gearing: 28% compared to 34% at the end of 2019 and continued high liquidity of €8.1 billion (of which €2.7 billion for Bolloré)
▪ Interim dividend: €0.02 per share payable in cash on September 4, 2020.
1 See glossary
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The share of net income of non-operating companies accounted for using the equity method was -€91 million compared to -€10million in the first half of 2019. It consists of:
- An impact of -€160million on Mediobanca, corresponding to the drop in market price, offset by financial income of +€109 million corresponding to the hedges placed on the securities;
- +€64 million from Telecom Italia, including the effect of the partial sale of Inwit.
After taking into account a tax expense of €353 million (compared to -€235 million in the first half of 2019), consolidated net income was €758 million, compared with €530 million in the first half of 2019. Net income, Group share was €174 million compared with €149 million in the first half of 2019.
Net debt was €7,528 million compared to €8,720 million on December 31, 2019, down by €1,192 million, of which - €185 million for Bolloré, excluding Vivendi.
Equity totaled €26,675 million (€25,942 million as of December 31, 2019), up by €733 million as a result of the sale of 10% of the capital of UMG to Tencent (+€2.8 billion before expenses and taxes) and despite the negative impact of prices on securities (-€1.4 billion) and buybacks of Group securities (Vivendi and Blue Solutions). The ratio of net debt to equity (gearing) was 28%, compared with 34% at the end of 2019.
As of June 30, 2020, the Group's liquidity position, including undrawn confirmed lines and liquid investments represented approximately3 €2.7 billion for Bolloré and €8.1 billion including Vivendi.
Group structure:
- Sale of 10% of UMG to a consortium led by Tencent
- Completion on March 31, 2020 of the sale of 10% of the share capital of UMG to a consortium led by Tencent, on the basis of an enterprise value of €30 billion for 100% of UMG;
- The consortium led by Tencent has the option to acquire up to an additional 10% of the share capital of UMG until January 15, 2021, on the same valuation basis.
- Ongoing buyback of Vivendi shares
- Between January 1 and March 6, 2020, Vivendi bought back 23 million shares on the market for a total of €559 million, increasing the total number of shares acquired under the program authorized by the General Shareholders' Meeting of April 15, 2019 to 131 million shares, i.e. 10% of share capital (as of the date of program implementation);
- Since the General Shareholders' Meeting of April 20, 2020, Vivendi has bought back 8.25 million additional shares for a total €160 million.
- Shareholding in Lagardère
- As of July 10, Vivendi held 21% of the share capital and 16% of the voting rights of Lagardère SCA.
3 excluding Vivendi.
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- Bolloré tender offer for Blue Solutions
- Finalization of the public tender for Blue Solutions for €17 per share, which took place from May 29 to July 8, 2020;
- Mandatory squeeze-outon July 15, 2020: Bolloré now holds 100% of Blue Solutions' share capital;
- The shares acquired are valued at €110 million.
Interim dividend: 0.02 euro per share
The Board of Directors of Bolloré decided to pay an interim dividend of €0.02 per share, the same as last year, payable in cash only.
The ex-dividend date will be September 2, 2020 and payment will be made on September 4, 2020.
Health crisis
Although the impact has been greater for some countries and business lines, the Group has been resilient and has adapted to continue to service its customers, while reducing its costs to preserve its margins. The Transportation and Logistics businesses benefited from exceptional freight rates which partially offset the slowdown in normal flows. The communications businesses held up well thanks to music and pay-TV.
The Group is closely monitoring the current and potential consequences of the crisis. At this time, it is difficult to determine how it will impact the annual results. Businesses related to advertising and live entertainment may be more durably impacted than others. However, the Group remains confident about the resilience of its main business lines. It continues to do everything possible to ensure the continuity of its activities and to serve and entertain its customers and audiences, while complying with the instructions of the authorities of each country in which it has a presence.
A review of the value of assets with an indefinite life was completed. With respect to the performance of the CGUs during the first half of the year, the Group did not identify any indications of impairment requiring the implementation of full impairment tests. An analysis was carried out using sensitivity tests to assess their resilience.
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Consolidated key figures for Bolloré | |||
(in millions of euros) | 1st half 2020 | 1st half 2019 | Change |
Revenue | 11,612 | 11,780 | (1%) |
EBITDA(1) | 1,555 | 1,410 | 10% |
Depreciation, amortization and provisions | (607) | (492) | (23%) |
Adjusted operating income (EBITA(1)) | 948 | 919 | 3% |
Amortization resulting from PPA(1) | (194) | (186) | (4%) |
Operating income | 754 | 732 | 3% |
of which operating equity associates | 4 | 6 | (31%) |
Financial income | 447 | 42 | NA |
Share of net income of non-operating | (91) | (10) | NA |
companies accounted for under the equity | |||
method | |||
Taxes | (353) | (235) | (50%) |
Net income | 758 | 530 | 43% |
Net income, Group share | 174 | 149 | 17% |
Minorities | 584 | 381 | 53% |
June 30, 2020 | December 31, 2019 | Change (€ m) | |
Equity | 26,675 | 25,942 | 733 |
Of which Group share | 8,453 | 9,088 | (636) |
Net debt | 7,528 | 8,720 | (1,192) |
Gearing (2) | 28% | 34% |
- See Glossary
- Gearing: ratio of net debt to equity
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Change in revenue by business in the first half
(in millions of euros) | 1st half-year | 1st half-year | 1st half-year | Reported | Organic |
2020 | 2019 (1) | 2019 | growth | growth | |
Transportation and Logistics | 2,856 | 2,916 | 2,974 | (4%) | (2%) |
Oil logistics | 1,046 | 1,286 | 1,278 | (18%) | (19%) |
Communications | 7,574 | 7,728 | 7,351 | 3% | (2%) |
Electricity Storage and Systems | 122 | 133 | 160 | (23%) | (8%) |
Other (Agricultural Assets, Holding companies) | 13 | 17 | 17 | (21%) | (22%) |
Total | 11,612 | 12,080 | 11,780 | (1%) | (4%) |
- at constant scope and exchange rates
All amounts are expressed in millions of euros and rounded to the nearest decimal. As a result, the sum of the rounded amounts may differ slightly from the reported total.
Change in revenue per quarter
(in millions of euros)
1st quarter
2nd quarter |
Transportation and Logistics Oil logistics Communications
Electricity Storage and Systems
Other (Agricultural Assets, Holding companies)
Total
- at constant scope and exchange rates
2020 |
1,394
631
3,868
65
8
5,966
2019 (1) | 2019 |
1,468 1,483
669 665
3,706 3,458
- 75
- 8
5,914 5,690
2020 |
1,462
415
3,706
58
6
5,646
2019 (1) | 2019 |
1,448 1,491
617 613
4,022 3,893
- 85
- 8
6,166 6,090
All amounts are expressed in millions of euros and rounded to the nearest decimal. As a result, the sum of the rounded amounts may differ slightly from the reported total.
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Adjusted operating income by business (EBITA)
(in millions of euros) | 1st half-year | 1st half-year | As reported | Organic |
2020 | 2019 | growth | ||
Bolloré Transportation & Logistics | 303 | 309 | (2%) | (1%) |
Transportation and logistics(1) | 268 | 284 | (6%) | (5%) |
Oil logistics | 35 | 25 | 43% | 42% |
Communications | 735 | 718 | 2% | (4%) |
Electricity Storage and Systems | (67) | (81) | 18% | 22% |
Other (Agricultural Assets, Holding | (23) | (27) | 15% | 15% |
Companies)(1) | ||||
Bolloré Group EBITA | 948 | 919 | 3% | (1%) |
- Before Bolloré trademark fees
A detailed presentation of the results is available atwww.bollore.com.
A limited review of the 2020 consolidated financial statements was carried out and the certification report will be issued following approval of the half-year activity report.
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Comparability of financial statements
- Change in the scope of consolidation
- Editis has been consolidated by Vivendi since February 1, 2019
- M7 has been consolidated by the Canal+ group since September 12, 2019
- Sale of Bolloré Ports France and Wifirst in the second half of 2019
- Changes in the main currencies
H1 2020 | H1 2019 | Change | |
USD | 1.10 | 1.13 | 3% |
GBP | 0.87 | 0.87 | (0%) |
PLN | 4.41 | 4.29 | (3%) |
JPY | 119.21 | 124.29 | 4% |
CNY | 7.75 | 7.67 | (1%) |
ZAR | 18.33 | 16.04 | (14%) |
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Glossary
Organic growth: growth at constant scope and exchange rates.
Adjusted operating income (EBITA): operating income before amortization of intangible assets related to business combinations - PPA (purchase price allocation), impairment of goodwill and other intangible assets related to business combinations.
EBITDA: operating income before depreciation and amortization.
Net financial debt/Net cash position: sum of borrowings at amortized cost, less cash and cash equivalents, cash management financial assets and net derivative financial instruments (assets or liabilities) with an underlying net financial indebtedness, as well as cash deposits backed by borrowings.
The non-GAAP measures defined below should be considered in addition to, and not as a substitute for other GAAP measures of operating and financial performance, and Bolloré considers these to be relevant indicators of the Group's operational and financial performance. Furthermore, it should be noted that other companies may define and calculate these indicators differently. It is therefore possible that the indicators used by Bolloré cannot be directly compared with those of other companies.
The percentages changes indicated in this document are calculated in relation to the same period of the preceding fiscal year, unless otherwise stated. Due to rounding in this presentation, the sum of some data may not correspond exactly to the calculated total and the percentage may not correspond to the calculated variation.
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Bolloré SE published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 15:56:04 UTC
